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For-profit college students account for 35% of all loan defaults

For-profit college students are more likely than their peers to default on their loans.

They make up 35% of all federal student loan defaults, even though they account for 27% of borrowers, according to government data released Wednesday.

"It's the people that go to school and leave without a degree that struggle the most to pay off their debt," said Kevin Fudge, the Director of Consumer Advocacy at American Student Assistance.

About 40% of students at for-profit colleges don't graduate, according to data from the White House College Scorecard. And the students who do get their degree earn less than $30,000 a year, on average.

The overall default rate for student loan borrowers within three years of leaving school has dipped slightly from 11.8% last year to 11.3%.

There can be serious consequences for defaulting on a federal student loan, which happens after nine months of missed payments. It will tank your credit score, which limits your ability to buy a car, a house or get a credit card. A collection agency can also ask to garnish your wages and withhold money from your federal and state tax returns.

The default rate is well off its peak of nearly 15% in 2013. While the economy has rebounded, the Obama administration has also implemented a number of repayment plans to help borrowers pay down their federal loans.

"No one should go into default given all the options and resources out there right now," Fudge said.